Indian domestic ferrous scrap prices rose in Mandi Gobindgarh due to short supply as collection rates remain low. Steel mills in the North have restarted production with limited capacity as casual workers have migrated to their home towns.
The daily Davis Index for HMS 1&2(80:20) rose by Rs300/mt ($3.96/mt) to Rs21,300/mt del Mandi Gobindgarh, and the index for sponge iron rose by Rs150/mt to Rs17,550/mt del Mandi Gobindgarh. The daily index for end cuttings rose by Rs1,000/mt to Rs24,700/mt del Mandi Gobindgarh and trades were heard at the index price.
Traders had stockpiled scrap inventories from before the lockdown period. Once trades pick up, they are looking to sell at a premium. Mumbai steelmakers are yet to resume operations as the city still grapples with the rapid rise in COVID-19 cases.
The daily Davis Index for HMS 1&2 (80:20) remained flat at Rs21,670/mt amid low trades. The daily Davis Index for sponge iron rose by Rs200/mt to Rs17800/mt del Mumbai mills.
Market participants are wary of the price direction. Traders have adopted a wait-and-watch approach and are hopeful of government intervention to infuse cash into the economy.